Hess Corporation (HES)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 650,000 | 619,000 | 437,000 | 2,587,000 | 590,000 |
| Payables | US$ in thousands | 402,000 | 285,000 | 220,000 | 200,000 | 411,000 |
| Payables turnover | 1.62 | 2.17 | 1.99 | 12.94 | 1.44 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $650,000K ÷ $402,000K
= 1.62
The payables turnover ratio for Hess Corporation has consistently been reported as 0.00 for the past five years, indicating that the company is not efficiently managing its accounts payable. A payables turnover ratio of 0.00 signifies that the company is taking an extended period to pay its suppliers or that there are issues with recording and reporting payables. This could potentially strain relationships with suppliers, lead to missed discounts for prompt payment, and impact the company's cash flow management. Further investigation into the company's payables process and operational efficiencies is warranted to address this concerning trend and improve overall financial performance.
Peer comparison
Dec 31, 2023